In a significant move to enhance user experience and streamline digital transactions, the National Payments Corporation of India (NPCI) has implemented several key changes in UPI (Unified Payments Interface) rules starting from June 16. These updates are aimed at making transactions quicker, reducing failures, and providing better transparency to users.
As per the new guidelines, the maximum time taken to process a UPI payment has been slashed by 50 percent. Earlier, a UPI payment could take up to 30 seconds to complete. Now, under the revised rules, most transactions will be processed within just 15 seconds. This is expected to significantly enhance user satisfaction by making payments nearly instantaneous.
The changes also cover transaction reversal, meaning refunding wrong payments, and status checks. Previously, it could take up to 30 seconds for a reversal or status check to complete. With the new system, this time has been reduced to just 10 seconds. This will help users get quicker updates on their failed or pending transactions.
These improvements are largely due to backend upgrades in the Application Programming Interface (API), the software systems that enable payments to move from one bank to another. In May, NPCI instructed banks and payment apps to upgrade their systems to implement these changes smoothly. Following these upgrades, the pathway for faster transactions has now been established. NPCI emphasized that these technical changes are designed to offer a superior user experience and reduce transaction failures. It has also issued guidelines on how banks and apps should handle pending transactions. Previously, apps had to wait for 90 seconds before rechecking a transaction's status. Now, they can recheck within 45 to 60 seconds after initiating the transaction, reducing confusion and improving clarity for users.
While the responsibility for implementing these upgrades lies with NPCI, banks, and payment apps, users also have a role to play. Customers need to ensure that their UPI apps are updated to the latest version. Using outdated apps may lead to transaction issues due to incompatibility with the upgraded systems.
NPCI has planned several additional updates for UPI throughout 2025. From June 30, 2025, before initiating a payment, users will be able to see the beneficiary's correct bank name. This added transparency is expected to help in reducing fraudulent transactions. From August 1, 2025, the number of balance check requests per app will be limited to 50 times per day. Additionally, auto-pay transactions will only be processed during seven designated non-peak hours to manage load on the system more effectively.
Although these changes aim to improve speed and transparency, there is currently no separate plan specifically targeted at reducing UPI-related frauds. However, by providing faster transaction status updates and making it easier to catch erroneous transactions early, these updates may indirectly help users identify and address fraudulent activities more quickly.
The ongoing technical improvements to UPI reflect NPCI's continued focus on enhancing digital payment infrastructure in India. Faster transaction times, quicker reversals, and better status updates are all part of making UPI more reliable and user-friendly. As the system evolves with these and other upcoming changes, users can expect an even smoother and safer digital payment experience in the near future.
Disclaimer: The information provided in this article is for general informational purposes only. While every effort has been made to ensure the accuracy of the information, readers are advised to verify any details with official sources or consult with financial experts before making any decisions based on this content. The blog does not take responsibility for any financial loss or inconvenience caused due to the usage of this information.
